The Securities and Exchange Board of India (SEBI) has ordered the disgorgement of ₹173 crore from eight individuals in connection with an insider trading case involving Indian Energy Exchange Ltd (IEX).
The regulator has also barred the individuals from trading in securities as part of interim action against alleged misuse of unpublished price-sensitive information.
According to SEBI’s interim order, the eight individuals traded in IEX shares and derivatives ahead of a regulatory announcement by the Central Electricity Regulatory Commission (CERC) regarding the implementation of “market coupling.”
The announcement, made on July 23, 2025, was deemed price-sensitive and was followed by a sharp decline in IEX’s share price the next day.
SEBI’s investigation found that several of the accused had made substantial trades in IEX put options before the announcement, despite having little to no prior history of such activity. The trading behavior was described by SEBI as inconsistent with their usual patterns and suggestive of prior access to confidential information.
The eight individuals named in the order include Bhoovan Singh, Amar Jit Singh Soran, Amita Soran, Anita, Narender Kumar, Virender Singh, Bindu Sharma, and Sanjeev Kumar.
SEBI’s whole-time member Kamlesh Chandra Varshney, in his 45-page interim order, stated that there is prima facie evidence indicating that the noticees were in possession of unpublished price-sensitive information (UPSI) before the regulatory decision was made public.
The regulator directed that ₹173 crore in alleged unlawful gains be impounded and deposited in interest-bearing fixed deposits with a lien in favor of SEBI.
The individuals’ bank and demat accounts have been frozen, allowing withdrawals only to facilitate transfer of the impounded funds.
Until full disgorgement is completed, the accused are prohibited from buying, selling, or dealing in any securities. After the amount is credited, they will remain barred from dealing in IEX securities specifically.
The probe was initiated after IEX’s stock price dropped nearly 30 percent on July 24, 2025, immediately following the CERC announcement.
SEBI correlated the sharp decline with prior unusual trading activity and flagged the pattern as indicative of insider trading.
Investigations included search and seizure operations conducted between September 18 and 20, 2025, across multiple locations associated with the accused. Digital records and communications were collected as evidence.
SEBI’s order also noted that part of the gains may have been transferred to other related parties, and further inquiry is ongoing.
The regulator has shared its findings with CERC for any action the power regulator may deem appropriate. SEBI also indicated that additional entities could be named as the investigation progresses.
The interim order represents one of SEBI’s more substantial enforcement actions in recent months and underscores its continued focus on curbing insider trading and strengthening governance standards across India’s capital markets.
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